Janus Henderson Property Fund Finds Buyer And Begins Termination

Janus Henderson said that the sale of the assets within the fund "has now progressed to a point where we can begin the process of terminating the funds and planning for the return of proceeds to investors".

The firm said that the sale price of the assets within the fund was above its most recent independent valuation, which it argued "provides a good outcome for investors given the ongoing uncertainty faced by daily dealing property funds".

Janus Henderson added that it expected the sale process to be complete in the week commencing 30 May, with the payment of proceeds expected to be completed about two weeks after.

Janus Henderson fund closure an 'ill omen' for wounded open-ended property sector

The PAIF and its associated feeder fund have been suspended since 3 March.

Janus Henderson's letter to investors explained that the closure of the fund was tied to the "ongoing uncertainty" around the future of the structure, as the industry awaits the Financial Conduct Authority's conclusion to its review of daily dealing products holding illiquid assets.

Oli Creasey, property research analyst at Quilter Cheviot, said that this outcome was "not a surprise, but the new detail is that the sale price is above the most recent valuation of the portfolio".

"We still do not know the exact circumstances that led to the sale, but the fact that it is taking place above book value further reduces any concerns that this was some sort of distressed event," he added

Creasey stated that it is still unknown "how far above book value the sale will take place at," adding that "clearly there is a difference between a 1% additional return vs 10% - and as the fund will bear the costs of the sale (lawyers/agents/etc) there is a risk that a small margin could still erode shareholder value". However, he added that this possibility is unlikely as Janus Henderson are not forced sellers.

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